ARGONAUT GOLD INC (AR-DB-U.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AR-DB-U - CA04016AAA93
99.79 USD
+0.13 (+0.13%)
AR-DB-U gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 817 industry peers in the Metals & Mining industry. While AR-DB-U is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, AR-DB-U is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year AR-DB-U has reported negative net income.
- AR-DB-U had a positive operating cash flow in the past year.
- In multiple years AR-DB-U reported negative net income over the last 5 years.
- AR-DB-U had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- AR-DB-U has a Return On Assets (-27.87%) which is in line with its industry peers.
- AR-DB-U has a worse Return On Equity (-59.12%) than 64.38% of its industry peers.
- AR-DB-U has a Return On Invested Capital of 0.58%. This is amongst the best in the industry. AR-DB-U outperforms 88.54% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AR-DB-U is significantly below the industry average of 11.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -27.87% | ||
| ROE | -59.12% | ||
| ROIC | 0.58% |
ROA(3y)-2.52%
ROA(5y)-4.31%
ROE(3y)-3.69%
ROE(5y)-5.35%
ROIC(3y)2.78%
ROIC(5y)3.46%
1.3 Margins
- AR-DB-U's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 1.82%, AR-DB-U belongs to the best of the industry, outperforming 88.92% of the companies in the same industry.
- AR-DB-U's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 9.89%, AR-DB-U belongs to the top of the industry, outperforming 86.55% of the companies in the same industry.
- AR-DB-U's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.82% | ||
| PM (TTM) | N/A | ||
| GM | 9.89% |
OM growth 3Y-39.22%
OM growth 5Y-16.56%
PM growth 3Y32.26%
PM growth 5YN/A
GM growth 3Y-25.39%
GM growth 5Y-9.67%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AR-DB-U is destroying value.
- AR-DB-U has more shares outstanding than it did 1 year ago.
- Compared to 1 year ago, AR-DB-U has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 86.03 indicates that AR-DB-U is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 86.03, AR-DB-U belongs to the best of the industry, outperforming 93.65% of the companies in the same industry.
- A Debt/Equity ratio of 0.14 indicates that AR-DB-U is not too dependend on debt financing.
- AR-DB-U has a Debt to Equity ratio of 0.14. This is in the lower half of the industry: AR-DB-U underperforms 69.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 86.03 |
ROIC/WACC0.07
WACC8.03%
2.3 Liquidity
- A Current Ratio of 0.61 indicates that AR-DB-U may have some problems paying its short term obligations.
- AR-DB-U has a worse Current ratio (0.61) than 70.86% of its industry peers.
- AR-DB-U has a Quick Ratio of 0.61. This is a bad value and indicates that AR-DB-U is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of AR-DB-U (0.52) is worse than 72.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
- AR-DB-U shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
- AR-DB-U shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -34.02% yearly.
- Looking at the last year, AR-DB-U shows a decrease in Revenue. The Revenue has decreased by -3.81% in the last year.
- AR-DB-U shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.69% yearly.
EPS 1Y (TTM)33.33%
EPS 3Y-63.75%
EPS 5Y-34.02%
EPS Q2Q%-3400%
Revenue 1Y (TTM)-3.81%
Revenue growth 3Y5.22%
Revenue growth 5Y13.69%
Sales Q2Q%-49.65%
3.2 Future
- Based on estimates for the next years, AR-DB-U will show a very strong growth in Earnings Per Share. The EPS will grow by 38.79% on average per year.
- The Revenue is expected to decrease by -1.34% on average over the next years.
EPS Next Y930%
EPS Next 2Y11.18%
EPS Next 3Y45.65%
EPS Next 5Y38.79%
Revenue Next Year11.39%
Revenue Next 2Y2.15%
Revenue Next 3Y-1.34%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for AR-DB-U. In the last year negative earnings were reported.
- The Price/Forward Earnings ratio is 5974.46, which means the current valuation is very expensive for AR-DB-U.
- 85.31% of the companies in the same industry are more expensive than AR-DB-U, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of AR-DB-U to the average of the S&P500 Index (24.26), we can say AR-DB-U is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5974.46 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AR-DB-U indicates a rather cheap valuation: AR-DB-U is cheaper than 86.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1663.7 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AR-DB-U does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as AR-DB-U's earnings are expected to grow with 45.65% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.18%
EPS Next 3Y45.65%
5. Dividend
5.1 Amount
- AR-DB-U does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARGONAUT GOLD INC / AR-DB-U.CA FAQ
What is the fundamental rating for AR-DB-U stock?
ChartMill assigns a fundamental rating of 3 / 10 to AR-DB-U.CA.
What is the valuation status for AR-DB-U stock?
ChartMill assigns a valuation rating of 2 / 10 to ARGONAUT GOLD INC (AR-DB-U.CA). This can be considered as Overvalued.
Can you provide the profitability details for ARGONAUT GOLD INC?
ARGONAUT GOLD INC (AR-DB-U.CA) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for AR-DB-U stock?
The Earnings per Share (EPS) of ARGONAUT GOLD INC (AR-DB-U.CA) is expected to grow by 930% in the next year.